Vitalik Buterin is once again surprising the crypto community, this time by proposing a rethink of the fundamental principles of data storage in Ethereum. The network's founder has publicly supported the idea of implementing the UTXO model, which Bitcoin has used since 2009, thanking the developers of the first cryptocurrency for this "hint." This is not just a technical experiment, but a response to a long-standing problem that has been holding back the development of the second-largest blockchain platform for years.
Why Ethereum "gets heavier" every day
The problem Buterin is talking about is critical. Every computer in the network—a node—stores a full copy of the ledger, including all accounts ever created. These records are never deleted, and each new wallet, even if no one uses it anymore, remains in the network's memory forever. One account takes up 100 to 150 bytes, and this burden is steadily growing.
I have repeatedly noted that scalability is not just about transaction speed, but also about storage efficiency. Buterin seems to have reached the same conclusion, stating that side networks do not solve this fundamental problem but merely mask it.
Bitcoin as a role model
The solution proposed by Ethereum Foundation researcher Tony Warstädter back in July involves transitioning to the UTXO model. In Bitcoin, balances are not tracked; instead, each specific coin is. After a coin is spent, only about a third of a byte remains in the system, not 150. The scale of the difference is impressive: a billion accounts in Ethereum's current model would require up to 150 GB, while a billion spent coins would require only about 300 MB.
The new scheme also assumes that the payer will cover the fee, rather than relying on the recipient having ETH in their account. In January, Buterin supplemented this idea with a proposal to aggregate transfer verifications into a single compact package, which would significantly reduce the load on the network.
Utreexo and a look to the future
The Utreexo project, which allows coins to be verified without storing the full list of addresses, will be a key element. According to Buterin's plan, both approaches will work simultaneously: large operations will scale, and anyone will be able to run a full node. The STARK technology underlying his Lean Ethereum plan has already sparked debates about implementation timelines.
The Foundation continues to introduce innovations, changing cryptography to protect against quantum computers. However, the market remains indifferent for now: ETH is trading around $1903, unable to break the $2000 mark for several weeks.
My conclusion: Buterin's proposal is a bold step that could radically change node economics and network decentralization. However, given Ethereum's historical inertia and the complexity of consensus, I assess the likelihood of quick implementation as low. This is more of a strategic declaration than an imminent update, but it is precisely such ideas that define the future of the entire industry.